International Breweries dives into deeper losses recording US$14.6m loss in first quarter

NIGERIAInternational Breweries Plc, Nigerian subsidiary of Anheuser-Busch InBev has recorded a loss of N5.645 billion (US$14.6m) for the first quarter ended March 31, 2020 triggered by foreign exchange loss and high cost of sales.

The brewing firm has also recorded a revenue of N35.348 billion (US$91.4m), up marginally from N35.097 billion (US$90.8m) in the corresponding quarter of 2019.

Cost of sales rose from N26.151 billion (US$67.67m) to N29.176 billion (US$75.50m) in 2020. Administrative expenses fell from N4.891 billion (US$12.65m) to N4.761 billion (US$12.32m), while marketing and promotion expenses also reduced from N3.927 billion (US$10.16m) to N3.797 billion (US$9.8m) in 2020.

According to a report by This Day, other income rose to N4.301 billion (US$11.13m), boosted by sale of waste and scraps.

The company recorded a N9.94 billion (US$25.72m) foreign exchange loss during the period, resulting from the exchange rate devaluation recently implemented by the Central Bank of Nigeria (CBN). The Company had significant FX exposure on its borrowings and payables.

Its loss before tax stood at N7.694 billion, compared with N5.318 billion (US$13.76m) in 2019. A tax credit of N2.048 billion (US$5.3m) reduced the loss after tax to N5.645 billion (US$14.6m) as against N3.988 billion (US$10.32m) in 2019.

With the on-going COVID-19 pandemic, the brewery has backed the effort of Anambra, Lagos, Ogun, Osun, and Rivers states among others in alleviating the hardship caused by the virus on Nigerians.

From monetary donations to provision of testing kits and personal protective equipment (PPE) for frontline healthcare workers, the member of AB InBev family collaborated with government, partners with stakeholders to reduce the spread of the disease.

According to a statement issued by the company, not less than 30,000 bottles of hand sanitisers have been distributed to these states, hospitals government institutions.

About 60,000 bottles non-alcoholic beverages produced by the company have also been donated to support the food distribution drive by the governments in various states.

Earlier in the implementation of the stay-home directive to curb the spread of the coronavirus, the company donated N10 million (US$25,000) to the National Centre for Disease Control (NCDC) for the procurement of test kits.

Hugo Dias Rocha, IBPlc’s Managing Director, said it was crucial to take solution-driven actions which would shape the future of the country. He reiterated the firm’s commitment to exploring areas of further potential collaboration and support with stakeholders, especially government.

“As an organisation, we are always looking to support our local communities and are positive that our donation will assist and support the government and our communities greatly in the fight against the spread of this pandemic,” Rocha stated.

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